Creating peace of mind through honest and committed management.

[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

September 28, 2015
REIT Issuer
Ichigo Office REIT Investment Corporation (8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
Asset Management Company
Ichigo Real Estate Investment Advisors Co., Ltd.
Representative: Wataru Orii, President & Representative Statutory Executive Officer
Inquiries: Hiroto Tajitsu, Head of Administration & Statutory Executive Officer
Tel: 03-3502-4891

Notice of New Loan for Acquisition of Ichigo Kawasaki Building
Ichigo Office REIT decided today to borrow funds for the acquisition of the Ichigo Kawasaki
Building, as announced in the August 31, 2015 release, “Asset Acquisition.”
1. Reason for New Loan
In the current Stage IV Increase Size & Scale (November 2014 – October 2015) of its multi-year
growth strategy, Ichigo Office REIT is increasing dividends and growing its geographicallydiversified portfolio of mid-size offices, an asset class that offers both stability of returns andupside potential. In Stage V Lay Foundation for Sustainable Dividend Growth (November 2015– October 2016), Ichigo Office REIT will pursue transactions to further drive dividend growthfor its shareholders.
Consistent with this growth strategy, Ichigo Office REIT is acquiring the Ichigo Kawasaki
Building as announced in the August 31, 2015 release, “Asset Acquisition.” The acquisition is
being financed by bank borrowings and cash-on-hand. The acquisition will grow rental income
by 92 million yen per annum resulting in a forecast increase in earnings per share of 25 yen.1
1

Based upon a six-month fiscal period and today’s 1,416,323 shares outstanding. Rental income
is the net income calculated via the direct capitalization method by Daiwa Real EstateAppraisal Co., Ltd. in its August 1, 2015 appraisal report minus one year worth of amortization
provisionally calculated by the asset management company. The interest rate applied in thecalculation is the rate through the first repayment date (September 30, 2015- October 29,2015).

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2. Loan Details
Term Loan 2
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms

Partial Repayment Date

Interest Rate
Interest Payment Date

Collateralized

Sumitomo Mitsui Banking Corporation
900 million yen
Asset acquisition and related costs
September 30, 2015
September 30, 20191
450,000 yen of the principal will be repaid on
each Partial Principal Repayment Date; theremainder will be repaid in full on the Principal
Repayment Date.
Final business day of January, April, July, andOctober following the Loan Date (the firstpayment date will be October 30, 2015 and thelast payment date will be the same as thePrincipal Repayment Date)
1M JPY TIBOR + 0.55 % (p.a.)2
Final business day of each month following theLoan Date (the first payment date will be
October 30, 2015 and the last payment date willbe the same as the Principal Repayment Date)
No

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In the event the date is not a business day, repayment shall be made on the next business day.
If the next business day is the following month, then the repayment shall be made on theimmediate previous business day.
2The interest rate from September 30, 2015 to October 29, 2015 is 0.68%. Ichigo Office REIT
will disclose the interest rate once it has been determined.
3. Outstanding Loan Balance
Beforeexecution(as of July 31,2015)

Afterexecution1(as of Sep 30,2015)

Short-term borrowings

000

Long-term borrowings(due within one year)2

5,635

283

-5,352Long-term borrowings

74,92981,181

6,252

Total borrowings

80,56581,464899

00080,565

81,464899

00080,565

81,464899

Investment corporation bonds
Total borrowings and investment
corporation bonds
Other interest-bearingliabilities
Total interest-bearing
liabilities
1

ChangeThese figures assume that this loan and other new loans and repayments are executed as announced intoday’s release, “Notice of New Loans, Interest Rate Swap, and Repayment of Existing Loans.”
2
These figures include existing borrowings and partial repayments of today’s borrowings.
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4. Future Outlook
The impact of the new loan on Ichigo Office REIT’s current period earnings is minimal.
Therefore, there is no revision to Ichigo Office REIT’s earnings and dividend forecast asannounced on June 16, 2015.
5. OtherRisks related to this loan have no material impact on the “Investment Risks” described in thelatest Securities Report submitted July 24, 2015.
For details of the lenders and the terms of existing loans, please refer to today’s release, “Noticeof New Loans, Interest Rate Swap, and Repayment of Existing Loans.”

Website of Ichigo Office REIT*: www.ichigo-office.co.jp/english*The website URL has changed as a result of the name change to Ichigo Office REIT on September
5, 2015.

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